A portfolio is made up of 125% of stock 1 and 25% of stock 2. Stock 1
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A portfolio is made up of 125% of stock 1 and −25% of stock 2. Stock 1 has a standard deviation of 0.3, and stock 2 has a standard deviation of 0.05. The correlation between the stocks is −0.50. Calculate both the variance and the standard deviation of the portfolio.
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Related Book For 
Lectures On Corporate Finance
ISBN: 9789812568991
2nd Edition
Authors: Peter L Bossaerts, Bernt Arne Odegaard
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